Working with Activity Types

After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Plan rates for cost center and activity type
  • Post an activity allocation

Rates Planning

The activity type classifies the activities performed within a company by one or several cost centers. If a cost center provides services for other cost centers, orders, and processes, this means that the resources of the cost center are used. The costs of these resources need to be allocated to the receivers of the activity. Activity types serve as tracing factors for this cost allocation.

In an internal activity allocation, the quantity of the activity, such as the number of consulting hours, is entered either manually or automatically into SAP S/4HANA Finance. The system calculates the associated cost based on the activity price, and generates a debit to the receiver and a credit to the cost center providing the activity for quantity and costs. To perform the allocation, the system uses a secondary cost element that is stored in the activity type master record as default values.

You can restrict the use of the activity type to certain types of cost centers by entering the allowed cost center categories in the activity type master record. You can enter up to eight allowed cost center categories, or leave the assignments unrestricted by entering an asterisk (*).

Create a Secondary Cost Account, an Activity Type and Set Activity Prices


Business Example

You have been asked to create the master data needed to enable a new Activity Type PERS## - Personnel Hours. A new Secondary Cost Element 943110## - Internal Working Hours ## should be used for the allocation. The Cost Element Category is 43 - Internal Activity Allocation. The Activity Type should be assigned to the Cost Center SERV-## with a price of EUR 120 per hour and to Cost Center ENGR-## with a price of EUR 150 per hour.

Activity Allocations

After creating both the cost center and activity type master records, you then assign a planned price to this combination. The system uses this price to valuate the quantity entered in the direct activity allocation. You specify this in the SAP S/4HANA Finance system by planning the activity output or prices for a cost center. To enable this, the SAP system provides a wide range of options.

You can enter the planned price manually or you can have the system calculate it.


Post a Direct Activity Allocation

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